Current Rating and Its Significance
MarketsMOJO’s Buy rating for Mahindra & Mahindra Ltd indicates a positive outlook on the stock’s potential for capital appreciation and value creation. This rating is based on a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Investors should understand that a Buy rating suggests the stock is expected to outperform the broader market or its sector peers over the medium to long term, making it a favourable addition to a diversified portfolio.
Quality Assessment
As of 03 January 2026, Mahindra & Mahindra Ltd holds a good quality grade. This reflects the company’s robust operational performance and consistent profitability. The firm has demonstrated healthy long-term growth, with net sales increasing at an annualised rate of 15.61% and operating profit expanding by 32.29%. Such growth rates underscore the company’s ability to scale its business efficiently while maintaining strong margins.
Additionally, the company has reported positive results for four consecutive quarters, signalling operational stability and resilience in a competitive automobile sector. The latest operating cash flow for the year stands at ₹3,175.81 crores, while the profit after tax (PAT) for the most recent six months has grown by 20.20%, reaching ₹7,756.64 crores. These figures highlight the company’s strong cash generation and profitability, key indicators of quality.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Valuation Perspective
The valuation grade for Mahindra & Mahindra Ltd is currently attractive. As of 03 January 2026, the company’s return on capital employed (ROCE) stands at a healthy 15.5%, indicating efficient use of capital to generate profits. The enterprise value to capital employed ratio is 3.3, suggesting the stock is trading at a discount relative to its peers’ historical valuations.
Over the past year, the stock has delivered a total return of 18.44%, while profits have increased by 19.9%. This alignment of earnings growth and stock price appreciation is reflected in a price/earnings to growth (PEG) ratio of 1.7, which is reasonable for a large-cap automobile company with strong fundamentals. Such valuation metrics imply that the stock offers good value for investors seeking growth at a fair price.
Financial Trend and Momentum
Financially, Mahindra & Mahindra Ltd is graded as positive. The company’s net sales for the latest quarter reached ₹46,105.67 crores, marking a record high. This upward trend in revenue is supported by consistent profit growth and strong cash flows, which together indicate a healthy financial trajectory.
Institutional investors hold a significant 68.08% stake in the company, reflecting strong confidence from knowledgeable market participants who typically conduct rigorous fundamental analysis. This high institutional ownership often contributes to stock price stability and can be a positive signal for retail investors.
Technical Outlook
The technical grade for Mahindra & Mahindra Ltd is bullish. The stock has shown positive price momentum recently, with a 1-day gain of 1.07%, a 1-week increase of 4.99%, and a 3-month rise of 9.78%. Over six months, the stock has appreciated by 20.13%, and the year-to-date return is 2.49%. These figures demonstrate sustained buying interest and upward price movement, which technical analysts interpret as a favourable trend for potential further gains.
Being ranked 9th among large-cap stocks and 44th across the entire market by MarketsMOJO, Mahindra & Mahindra Ltd is positioned among the top 1% of companies rated across more than 4,000 stocks. This ranking underscores the stock’s strong overall profile combining quality, valuation, financial health, and technical strength.
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What This Means for Investors
For investors considering Mahindra & Mahindra Ltd, the Buy rating signals a favourable risk-reward profile supported by strong fundamentals and positive market sentiment. The company’s consistent revenue and profit growth, attractive valuation metrics, and bullish technical indicators combine to present a compelling investment case.
Investors should note that the rating was last updated on 10 Nov 2025, but the data and analysis presented here reflect the stock’s current status as of 03 January 2026. This ensures that investment decisions are based on the most recent and relevant information available.
Given the company’s leadership position in the automobile sector, robust financial health, and strong institutional backing, Mahindra & Mahindra Ltd remains a stock to watch for those seeking growth opportunities in large-cap Indian equities.
Summary
In summary, Mahindra & Mahindra Ltd’s Buy rating by MarketsMOJO is justified by its good quality, attractive valuation, positive financial trends, and bullish technical outlook. The stock’s performance metrics as of 03 January 2026 reinforce its standing as a strong candidate for investors aiming to capitalise on the growth potential within the automobile sector.
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